Prediction: Strong Storm Could Cause $65B in Offshore Losses

Wednesday, September 19, 2007
An extreme-risk consulting firm predicted a strong hurricane in the Gulf of Mexico could generate losses of more than $65 billion for the offshore oil and gas industry. EQECAT, a subsidiary of Oakland, Calif.-based ABSG Consulting Inc., said recently a strong Category 5 storm, with a track through the heart of the Gulf of Mexico, could produce such property damage and revenue losses. “Property damage alone could exceed $35 billion and losses due to business interruption and reduction in production capacity could add another $30 billion to the loss,” said Richard Clinton, EQECAT’s president. “Industry insured losses are more difficult to estimate due to changes in allocated insurance capacity, policy terms and limits following the large losses from 2004 and 2005 hurricanes, but certainly could be in the $15 billion range.” EQECAT based the findings on running a new offshore energy model it produced. The model has the ability to quantify the risk of disruption of product delivery to onshore facilities due to pipeline damage, reductions in production and infrastructure damage. The model can be found at www.eqecat.com.
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

When Will Deep Sea Mining Commence? The Robot is Ready

The world's first deep sea mining robot sits idle on a British factory floor, waiting to claw up high grade copper and gold from the seabed off Papua New Guinea

 
 
Maritime Contracts Maritime Security Offshore Oil Pipelines Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1066 sec (9 req/sec)